UAW proposal paves the way for union-run health care trust

The Detroit News

The United Auto Workers union announced today that is has filed a settlement proposal in U.S. District Court related to health care claims against General Motors Corp.

If approved, the union said, the settlement will pave the way for the creation of the union-run health care trust agreed to between GM and the union as part of the 2007 collective bargaining agreement.

The settlement proposal filed Thursday is a class action representing retirees and outlines the governance and funding of the proposed Voluntary Employee Beneficiary Association, or VEBA, which will pay health benefits for current and future GM retirees.

Similar litigation will be required before VEBA trusts can be established for Ford Motor Co. and Chrysler LLC UAW retirees.

The proposed GM-UAW settlement will be considered at a June 3 hearing in Detroit.